Investors Lose Millions During Market Downturn with Controversial Financial Product, XIV

Posted on March 21st, 2018 at 2:10 PM
Investors Lose Millions During Market Downturn with Controversial Financial Product, XIV

From the Desk of Jim Eccleston at Eccleston Law LLC:

In early February, as the Dow Jones industrial average dropped nearly 1,600 points, many analysts pointed to Credit Suisse’s VelocityShares Daily Inverse VIX Short-Term exchanged-traded note (ETN), or XIV for short, as a major factor that caused staggering market losses.

Moreover, analyst argued that the reason XIV played such a significant role in causing staggering market losses had to do with the fact that the product shorts volatility by betting on calm market conditions.

Furthermore, during the market downturn, the price of XIV dropped from $109 a share, to as low as $10.10 a share, causing significant losses for investors who owned the product. 

In response, Credit Suisse announced that the XIV shares would stop trading and that the fund would close.

Eccleston Law continues to investigate and is interested in speaking with any retail investors who bought through Credit Suisse.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.


Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC

Return to Archive



If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.


June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.